US Regulators Seize Troubled First Republic Bank, JPMorgan To Acquire It
NDTV
JPMorgan will "assume all deposits, including all uninsured deposits, and substantially all assets" of First Republic, the California Department of Financial Protection and Innovation said in a statement.
First Republic Bank was taken over by regulators and will be acquired by JPMorgan Chase & Co. after rescue efforts failed to undo the damage from wrong-way investments and depositor runs that have roiled regional lenders.
JPMorgan will "assume all deposits, including all uninsured deposits, and substantially all assets" of First Republic, the California Department of Financial Protection and Innovation said in a statement.
The California regulator appointed the Federal Deposit Insurance Corp. as receiver of the San Francisco-based bank. "Deposits are federally insured by the FDIC subject to applicable limits," the DFPI said in its statement.
The transaction makes JPMorgan, the nation's largest bank, even more massive - an outcome government officials have taken pains to avoid in the past. Because of US regulatory restrictions, JPMorgan's size and its existing share of the US deposit base would prevent it under normal circumstances from expanding its deposit base further. And prominent Democratic lawmakers and the Biden administration have chafed at consolidation in the financial industry and other sectors.
